Cover
Cover | 6 Months Ended |
Jun. 30, 2019shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2019 |
Document Transition Report | false |
Entity File Number | 1-32630 |
Entity Registrant Name | FIDELITY NATIONAL FINANCIAL, INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 16-1725106 |
Entity Address, Address Line One | 601 Riverside Avenue |
Entity Address, City or Town | Jacksonville |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 32204 |
City Area Code | 904 |
Local Phone Number | 854-8100 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
FNF Common Stock (in shares) | 274,416,550 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0001331875 |
Current Fiscal Year End Date | --12-31 |
Common Stock | |
Document Information [Line Items] | |
Title of 12(b) Security | FNF Common Stock, $0.0001 par value |
Trading Symbol | FNF |
Security Exchange Name | NYSE |
5.50% Notes due September 2022 | |
Document Information [Line Items] | |
Title of 12(b) Security | 5.50% Notes due September 2022 |
Trading Symbol | FNF22 |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturity securities available for sale, at fair value, at June 30, 2019 and December 31, 2018 includes pledged fixed maturity securities of $425 and $418, respectively, related to secured trust deposits | $ 2,054 | $ 1,998 |
Investments in unconsolidated affiliates | 139 | 137 |
Other long-term investments | 145 | 135 |
Short-term investments, at December 31,2018 includes short-term investments of $8 related to secured trust deposits | 314 | 480 |
Total investments | 3,629 | 3,549 |
Cash and cash equivalents, at June 30, 2019 and December 31, 2018 includes $503 and $412, respectively, of pledged cash related to secured trust deposits | 1,605 | 1,257 |
Trade and notes receivables, net of allowance of $19 at June 30, 2019 and December 31, 2018 | 361 | 306 |
Goodwill | 2,725 | 2,726 |
Prepaid expenses and other assets | 422 | 377 |
Lease assets, see Note K | 402 | 0 |
Other intangible assets, net | 472 | 513 |
Title plants | 405 | 405 |
Property and equipment, net | 168 | 164 |
Income taxes receivable | 0 | 4 |
Total assets | 10,189 | 9,301 |
Liabilities: | ||
Accounts payable and accrued liabilities | 925 | 956 |
Notes payable | 838 | 836 |
Reserve for title claim losses | 1,480 | 1,488 |
Secured trust deposits | 912 | 822 |
Lease liabilities, see Note K | 428 | 0 |
Income taxes payable | 49 | 0 |
Deferred tax liability | 261 | 227 |
Total liabilities | 4,893 | 4,329 |
Commitments and Contingencies: | ||
Redeemable non-controlling interest by 21% minority holder of ServiceLink Holdings, LLC | 344 | 344 |
Equity: | ||
FNF common stock, $0.0001 par value; authorized 487,000,000 shares as of June 30, 2019 and December 31, 2018; outstanding of 274,416,550 and 275,373,834 as of June 30, 2019 and December 31, 2018, respectively, and issued of 289,875,770 and 289,601,523 as of June 30, 2019 and December 31, 2018, respectively | 0 | 0 |
Preferred stock, $0.0001 par value; authorized 50,000,000 shares; issued and outstanding, none | 0 | 0 |
Additional paid-in capital | 4,528 | 4,500 |
Retained earnings | 942 | 641 |
Accumulated other comprehensive earnings (loss) | 36 | (13) |
Less: Treasury stock, 15,459,220 shares and 14,227,689 shares as of June 30, 2019 and December 31, 2018, respectively, at cost | (544) | (498) |
Total Fidelity National Financial, Inc. shareholders’ equity | 4,962 | 4,630 |
Non-controlling interests | (10) | (2) |
Total equity | 4,952 | 4,628 |
Total liabilities, redeemable non-controlling interest and equity | 10,189 | 9,301 |
Preferred securities | ||
Investments: | ||
Securities, at fair value | 287 | 301 |
Equity securities | ||
Investments: | ||
Securities, at fair value | $ 690 | $ 498 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Pledged fixed maturity securities | $ 425 | $ 418 |
Short term investments, secured trust deposits | 0 | 8 |
Pledged cash, secured trust deposits | 503 | 412 |
Trade and notes receivables, allowance | $ 19 | $ 19 |
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 487,000,000 | 487,000,000 |
Common stock outstanding (in shares) | 274,416,550 | 275,373,834 |
Common stock issued (in shares) | 289,875,770 | 289,601,523 |
Preferred stock par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Treasury stock, at cost (in shares) | 15,459,220 | 14,227,689 |
ServiceLink Holdings, LLC | ||
Ownership interest | 21.00% | 21.00% |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Direct title insurance premiums | $ 625 | $ 599 | $ 1,065 | $ 1,071 |
Agency title insurance premiums | 754 | 732 | 1,306 | 1,296 |
Escrow, title-related and other fees | 665 | 765 | 1,199 | 1,383 |
Interest and investment income | 59 | 43 | 113 | 81 |
Realized gains and losses, net | 41 | (16) | 183 | (15) |
Total revenues | 2,144 | 2,123 | 3,866 | 3,816 |
Expenses: | ||||
Personnel costs | 685 | 665 | 1,277 | 1,272 |
Agent commissions | 579 | 561 | 1,000 | 992 |
Other operating expenses | 409 | 506 | 753 | 929 |
Depreciation and amortization | 44 | 45 | 88 | 92 |
Provision for title claim losses | 62 | 60 | 107 | 107 |
Interest expense | 12 | 11 | 24 | 22 |
Total expenses | 1,791 | 1,848 | 3,249 | 3,414 |
Earnings from continuing operations before income taxes and equity in earnings of unconsolidated affiliates | 353 | 275 | 617 | 402 |
Income tax expense | 86 | 22 | 151 | 53 |
Earnings before equity in earnings of unconsolidated affiliates | 267 | 253 | 466 | 349 |
Equity in earnings of unconsolidated affiliates | 3 | 1 | 10 | 3 |
Net earnings | 270 | 254 | 476 | 352 |
Less: Net earnings attributable to non-controlling interests | 4 | 3 | 4 | 4 |
Net earnings attributable to common shareholders | $ 266 | $ 251 | $ 472 | $ 348 |
FNF Common Stock | ||||
Earnings per share | ||||
Net earnings per share attributable to shareholders (in usd per share) | $ 0.97 | $ 0.92 | $ 1.73 | $ 1.27 |
Net earnings per share attributable to shareholders (in usd per share) | $ 0.96 | $ 0.90 | $ 1.70 | $ 1.25 |
Weighted average shares outstanding, basic basis (in shares) | 273 | 273 | 273 | 273 |
Weighted average shares outstanding, diluted basis (in shares) | 277 | 278 | 277 | 279 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net earnings | $ 270 | $ 254 | $ 476 | $ 352 | |
Other comprehensive earnings (loss): | |||||
Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates | [1] | 20 | (6) | 43 | (15) |
Unrealized gain on investments in unconsolidated affiliates | [2] | 1 | 1 | 7 | 4 |
Unrealized gain (loss) on foreign currency translation | [3] | 2 | (1) | 4 | (2) |
Reclassification adjustments for change in unrealized gains and losses included in net earnings | [4] | (1) | 1 | (5) | (1) |
Other comprehensive earnings (loss) | 22 | (5) | 49 | (14) | |
Comprehensive earnings | 292 | 249 | 525 | 338 | |
Less: Comprehensive earnings attributable to non-controlling interests | 4 | 3 | 4 | 4 | |
Comprehensive earnings (loss) attributable to Fidelity National Financial Inc. Common Shareholders | $ 288 | $ 246 | $ 521 | $ 334 | |
[1] | Net of income tax expense (benefit) of $ 6 million and $ (2) million for the three-month periods ended June 30, 2019 and 2018 , respectively, and $14 million and $(5) million for the six -month periods ended June 30, 2019 and 2018 , respectively. | ||||
[2] | Net of income tax expense of less than $ 1 million for the three-month periods ended June 30, 2019 and 2018 , and $2 million and $1 million for the six -month periods ended June 30, 2019 and 2018 , respectively | ||||
[3] | Net of income tax expense (benefit) of $ 1 million and less than $ (1) million for the three-month periods ended June 30, 2019 and 2018 , respectively, and $1 million and $(1) million for the six -month periods ended June 30, 2019 and 2018 , respectively. | ||||
[4] | Net of income tax (benefit) expense of less than $(1) million and $1 million for the three-month periods ended June 30, 2019 and 2018 , respectively, and $(2) million and less than $(1) million for the six -month periods ended June 30, 2019 and 2018 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on investments and other financial instruments, tax expense (benefit) | $ 6 | $ (2) | $ 14 | $ (5) |
Unrealized gain on investments in unconsolidated affiliates tax expense | 1 | 2 | 1 | |
Unrealized (loss) gain foreign currency translation, tax expense (benefit) | 1 | (1) | 1 | (1) |
Reclassification adjustment for change in unrealized gains and losses included in net earnings, tax (benefit) expense | $ (1) | $ 1 | $ (2) | $ (1) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | ASU 2018-02 | Common StockFNF Group Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsASU 2018-02 | Accumulated Other Comprehensive Earnings (Loss) | Accumulated Other Comprehensive Earnings (Loss)ASU 2018-02 | Treasury Stock | Non-controlling Interests | |
Beginning balance (in shares) at Dec. 31, 2017 | 288 | 13 | |||||||||
Beginning balance at Dec. 31, 2017 | $ 4,467 | $ 0 | $ 4,587 | $ 217 | $ 111 | $ (468) | $ 20 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Exercise of stock options | 6 | 6 | |||||||||
Other comprehensive earnings — unrealized gain (losses) on investments and other financial instruments | (15) | (15) | |||||||||
Other comprehensive earnings — unrealized gain on investments in unconsolidated affiliates | 4 | [1] | 4 | ||||||||
Other comprehensive earnings — unrealized gain on foreign currency translation | (2) | [2] | (2) | ||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | (1) | [3] | (1) | ||||||||
Reclassification for ASU 2018-02 | $ 0 | $ 1 | $ (1) | ||||||||
Equity portion of debt conversions settled in cash | (51) | (51) | |||||||||
Dilution resulting from subsidiary issuance of equity | 2 | (2) | 4 | ||||||||
Stock-based compensation | 15 | 15 | |||||||||
Dividends declared, per common share | (165) | (165) | |||||||||
Subsidiary repurchase of equity | (1) | (1) | |||||||||
Acquisitions of non-controlling interests | 3 | 3 | |||||||||
Subsidiary dividends declared to non-controlling interests | (4) | (4) | |||||||||
Net earnings | 352 | 348 | 4 | ||||||||
Ending balance (in shares) at Jun. 30, 2018 | 288 | 13 | |||||||||
Ending balance at Jun. 30, 2018 | 4,629 | $ 0 | 4,555 | 529 | (13) | $ (468) | 26 | ||||
Beginning balance at Dec. 31, 2017 | 344 | ||||||||||
Ending balance at Jun. 30, 2018 | 344 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 290 | 14 | |||||||||
Beginning balance at Dec. 31, 2018 | 4,628 | $ 0 | 4,500 | 641 | (13) | $ (498) | (2) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Exercise of stock options | 6 | 6 | |||||||||
Treasury stock repurchased (in shares) | 1 | ||||||||||
Treasury stock repurchased | (46) | $ (46) | |||||||||
Other comprehensive earnings — unrealized gain (losses) on investments and other financial instruments | 43 | 43 | |||||||||
Other comprehensive earnings — unrealized gain on investments in unconsolidated affiliates | 7 | [1] | 7 | ||||||||
Other comprehensive earnings — unrealized gain on foreign currency translation | 4 | [2] | 4 | ||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | (5) | [3] | (5) | ||||||||
Stock-based compensation | 18 | 18 | |||||||||
Dividends declared, per common share | (171) | (171) | |||||||||
Purchase of additional share in consolidated subsidiaries | (3) | 4 | (7) | ||||||||
Subsidiary dividends declared to non-controlling interests | (5) | (5) | |||||||||
Net earnings | 476 | 472 | 4 | ||||||||
Ending balance (in shares) at Jun. 30, 2019 | 290 | 15 | |||||||||
Ending balance at Jun. 30, 2019 | 4,952 | $ 0 | $ 4,528 | $ 942 | $ 36 | $ (544) | $ (10) | ||||
Beginning balance at Dec. 31, 2018 | 344 | ||||||||||
Ending balance at Jun. 30, 2019 | $ 344 | ||||||||||
[1] | Net of income tax expense of less than $ 1 million for the three-month periods ended June 30, 2019 and 2018 , and $2 million and $1 million for the six -month periods ended June 30, 2019 and 2018 , respectively | ||||||||||
[2] | Net of income tax expense (benefit) of $ 1 million and less than $ (1) million for the three-month periods ended June 30, 2019 and 2018 , respectively, and $1 million and $(1) million for the six -month periods ended June 30, 2019 and 2018 , respectively. | ||||||||||
[3] | Net of income tax (benefit) expense of less than $(1) million and $1 million for the three-month periods ended June 30, 2019 and 2018 , respectively, and $(2) million and less than $(1) million for the six -month periods ended June 30, 2019 and 2018 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in usd per share) | $ 0.62 | $ 0.60 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 476 | $ 352 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 88 | 92 |
Equity in earnings of unconsolidated affiliates | (10) | (3) |
Loss (gain) on sales of investments and other assets and asset impairments, net | 4 | (5) |
Non-cash lease costs | 73 | 0 |
Operating lease payments | (75) | 0 |
Distributions from unconsolidated affiliates, return on investment | 5 | 3 |
Stock-based compensation cost | 18 | 15 |
Change in valuation of equity and preferred securities, net | (187) | 21 |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Net increase in trade receivables | (51) | (21) |
Net increase in prepaid expenses and other assets | (48) | (19) |
Net increase (decrease) in accounts payable, accrued liabilities, deferred revenue and other | 16 | (25) |
Net decrease in reserve for title claim losses | (8) | (3) |
Net change in income taxes | 71 | (57) |
Net cash provided by operating activities | 372 | 350 |
Cash flows from investing activities: | ||
Proceeds from sales of investment securities | 405 | 309 |
Proceeds from calls and maturities of investment securities | 112 | 304 |
Proceeds from sales of property and equipment | 0 | 21 |
Funding of Cannae Holdings Inc. note receivable | (100) | 0 |
Proceeds from repayment of Cannae Holdings Inc. note receivable | 100 | 0 |
Additions to property and equipment and capitalized software | (47) | (39) |
Purchases of investment securities | (518) | (579) |
Net proceeds from sales and maturities of short-term investment securities | 166 | 40 |
Additional investments in unconsolidated affiliates | (20) | (34) |
Distributions from unconsolidated affiliates, return of investment | 27 | 42 |
Net other investing activities | (5) | (4) |
Other acquisitions/disposals of businesses, net of cash acquired/disposed | 0 | (6) |
Net cash provided by investing activities | 120 | 54 |
Cash flows from financing activities: | ||
Debt principal payments | 0 | (30) |
Equity portion of debt conversions paid in cash | 0 | (58) |
Dividends paid | (169) | (164) |
Subsidiary dividends paid to non-controlling interest shareholders | (5) | (4) |
Exercise of stock options | 6 | 6 |
Subsidiary equity repurchase | 0 | (1) |
Net change in secured trust deposits | 90 | 67 |
Purchase of additional share in consolidated subsidiaries | (3) | 0 |
Payment of contingent consideration for prior period acquisitions | (17) | (10) |
Purchases of treasury stock | (46) | 0 |
Net cash used in financing activities | (144) | (194) |
Net increase in cash and cash equivalents | 348 | 210 |
Cash and cash equivalents at beginning of period | 1,257 | 1,110 |
Cash and cash equivalents at end of period | $ 1,605 | $ 1,320 |
Basis of Financial Statements
Basis of Financial Statements | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | Basis of Financial Statements The financial information in this report presented for interim periods is unaudited and includes the accounts of Fidelity National Financial, Inc. and its subsidiaries (collectively, “we,” “us,” “our,” or “FNF”) prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2018 . Certain reclassifications have been made to the 2018 Condensed Consolidated Financial Statements to conform to classifications used in 2019. Description of the Business We are a leading provider of (i) title insurance, escrow and other title-related services, including trust activities, trustee sales guarantees, recordings and reconveyances and home warranty products and (ii) technology and transaction services to the real estate and mortgage industries. FNF is one of the nation’s largest title insurance companies operating through its title insurance underwriters - Fidelity National Title Insurance Company ("FNTIC"), Chicago Title Insurance Company ("Chicago Title"), Commonwealth Land Title Insurance Company ("Commonwealth Title"), Alamo Title Insurance and National Title Insurance of New York Inc. - which collectively issue more title insurance policies than any other title company in the United States. Through our subsidiary, ServiceLink Holdings, LLC ("ServiceLink"), we provide mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. For information about our reportable segments refer to Note H Segment Information . Recent Developments Pending Acquisition of Stewart On March 18, 2018, we signed a merger agreement (the "Merger Agreement") to acquire Stewart Information Services Corporation ("Stewart") (NYSE: STC) (the "Stewart Merger"). The material terms of the Merger Agreement and progress on the Stewart Merger through February 2019 are set forth in our Annual Report. On June 10, 2019, we exercised our second option to extend the closing date of the transaction an additional three months to September 18, 2019. We continue to work with the Federal Trade Commission and the New York State Department of Financial Services to seek approval of the proposed acquisition. If the approvals are obtained, we remain confident that the Stewart acquisition can create meaningful long-term value for our shareholders. The closing of the Stewart Merger is subject to certain closing conditions, including federal and state regulatory approvals and the satisfaction of other customary closing conditions. Note Receivable from Cannae In November 2017, in conjunction with the split-off of our former portfolio company investments into a separate company, Cannae Holdings, Inc. ("Cannae"), we issued to Cannae a revolver note (the "Cannae Revolver") in the aggregate principal amount of up to $100 million . Cannae is considered a related party to FNF. The Cannae Revolver accrues interest quarterly at LIBOR plus 450 basis points and matures on the five -year anniversary from the date of issuance. The maturity date is automatically extended for additional five -year terms unless notice of non-renewal is otherwise provided by either FNF or Cannae, in their sole discretion. On February 7, 2019, Cannae borrowed $100 million from FNF under the Cannae Revolver. On June 12, 2019, Cannae repaid to FNF the entire $100 million outstanding amount under the Cannae Revolver. On July 5, 2019, Cannae borrowed $100 million from FNF under the Cannae Revolver. We account for the Cannae Revolver as a financing receivable. Interest income is recorded ratably in periods in which principal is outstanding. Uncollectible financing receivables are written off or impaired when, based on all available information, it is probable that a loss has occurred. Income Tax Income tax expense was $86 million and $22 million in the three-month periods ended June 30, 2019 and 2018 , respectively, and $151 million and $53 million in the six -month periods ended June 30, 2019 and 2018 , respectively. Income tax expense as a percentage of earnings before income taxes was 24% and 8% in the three-month periods ended June 30, 2019 and 2018 , respectively, and 24% and 13% in the six-month periods ended June 30, 2019 and 2018 , respectively. The increase in income tax expense as a percentage of earnings before taxes in the 2019 periods from the comparable periods in 2018 was primarily attributable to a change in tax estimate in the three months ended June 30, 2018 relating to the timing of payments for, and tax rate applicable to, our tax liability resulting from the decrease in statutory premium reserve associated with the redomestication of certain of our title underwriters. Earnings Per Share Basic earnings per share, as presented on the Condensed Consolidated Statement of Earnings, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such period. In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus the impact of assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted earnings per share is equal to basic earnings per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. We have granted certain stock options, shares of restricted stock, convertible debt instruments and certain other convertible share based payments which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported. Options or other instruments which provide the ability to purchase shares of our common stock that are antidilutive are excluded from the computation of diluted earnings per share. There were no antidilutive instruments outstanding during the three or six -month periods ended June 30, 2019 or June 30, 2018 . Recent Accounting Pronouncements Adopted Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 Leases (Topic 842) . The amendments in this ASU introduce broad changes to the accounting and reporting for leases by lessees. The main provisions of the new standard include: clarifications to the definitions of a lease, components of leases, and criteria for determining lease classification; requiring virtually all leased assets, including operating leases and related liabilities resulting from applying the fair value measurement, to be reflected on the lessee's balance sheet; and expanding and adding to the required disclosures for lessees. In July 2018, the FASB issued ASU 2018-11 Leases (Topic 842): Targeted Improvements which allows entities the option to adopt this standard using a modified retrospective approach with a cumulative-effect adjustment to opening equity at the adoption date and include required disclosures for prior periods. We adopted Topic 842 on January 1, 2019 using a modified retrospective approach and recorded lease right-of-use assets ("Lease assets") of $421 million and liabilities for future discounted lease payment obligations ("Lease liabilities") of $437 million at the date of adoption. The adoption also resulted in a decrease of $9 million and $25 million to our Prepaid expenses and other assets and Accounts payable and accrued liabilities, respectively. There was no impact to opening equity as a result of the adoption. We elected to apply the following package of practical expedients on a consistent basis permitting entities not to reassess: (i) whether any expired or existing contracts are or contain a lease; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance. See Note K. Leases for further discussion of our leasing arrangements and related accounting. Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . The amendments in this ASU introduce broad changes to accounting for credit impairment of financial instruments. The primary updates include the introduction of a new current expected credit loss ("CECL") model that is based on expected rather than incurred losses and amendments to the accounting for impairment of fixed maturity securities available for sale. This update is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. We are still evaluating the effect this new guidance will have on our consolidated financial statements and related disclosures and have not yet concluded on its effects. We do not plan to early adopt the standard. |
Summary of Reserve for Claims L
Summary of Reserve for Claims Losses | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Summary of Reserve for Claims Losses | Summary of Reserve for Claim Losses A summary of the reserve for claim losses follows: Six months ended June 30, 2019 2018 (Dollars in millions) Beginning balance $ 1,488 $ 1,490 Claim loss provision related to: Current year 107 107 Prior years — — Total title claim loss provision 107 107 Claims paid, net of recoupments related to: Current year (2 ) (3 ) Prior years (113 ) (107 ) Total title claims paid, net of recoupments (115 ) (110 ) Ending balance of claim loss reserve for title insurance $ 1,480 $ 1,487 Provision for title insurance claim losses as a percentage of title insurance premiums 4.5 % 4.5 % We continually update loss reserve estimates as new information becomes known, new loss patterns emerge, or as other contributing factors are considered and incorporated into the analysis of reserve for claim losses. Estimating future title loss payments is difficult because of the complex nature of title claims, the long periods of time over which claims are paid, significantly varying dollar amounts of individual claims and other factors. Due to the uncertainty inherent in the process and to the judgment used by management, the ultimate liability may be greater or less than our current reserves. If actual claims loss development varies from what is currently expected and is not offset by other factors, it is possible that additional reserve adjustments may be required in future periods in order to maintain our recorded reserve within a reasonable range of our actuary's central estimate. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 , respectively: June 30, 2019 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities available for sale: U.S. government and agencies $ — $ 265 $ — $ 265 State and political subdivisions — 76 — 76 Corporate debt securities — 1,565 16 1,581 Mortgage-backed/asset-backed securities — 73 — 73 Foreign government bonds — 59 — 59 Preferred securities 18 269 — 287 Equity securities 690 — — 690 Other long-term investment — — 112 112 Total assets $ 708 $ 2,307 $ 128 $ 3,143 December 31, 2018 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities available for sale: U.S. government and agencies $ — $ 225 $ — $ 225 State and political subdivisions — 148 — 148 Corporate debt securities — 1,486 17 1,503 Mortgage-backed/asset-backed securities — 60 — 60 Foreign government bonds — 62 — 62 Preferred securities 16 285 — 301 Equity securities 498 — — 498 Other long-term investment — — 101 101 Total assets $ 514 $ 2,266 $ 118 $ 2,898 Our Level 2 fair value measures for preferred securities and fixed maturity securities available for sale are provided by a third-party pricing service. We utilize one firm for our preferred stock and our bond portfolios . The pricing service is a leading global provider of financial market data, analytics and related services to financial institutions. The inputs utilized in these pricing methodologies include observable measures such as benchmark yields, reported trades, broker dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers and reference data including market research publications. We review the pricing methodologies for all of our Level 2 securities by obtaining an understanding of the valuation models and assumptions used by the third-party as well as independently comparing the resulting prices to other publicly available measures of fair value and internally developed models. The pricing methodologies used by the relevant third-party pricing services are as follows: • U.S. government and agencies: These securities are valued based on data obtained for similar securities in active markets and from inter-dealer brokers. • State and political subdivisions: These securities are valued based on data obtained for similar securities in active markets and from inter-dealer brokers. Factors considered include relevant trade information, dealer quotes and other relevant market data. • Corporate debt securities: These securities are valued based on dealer quotes and related market trading activity. Factors considered include the bond's yield, its terms and conditions, or any other feature which may influence its risk and thus marketability, as well as relative credit information and relevant sector news. • Foreign government bonds: These securities are valued based on a discounted cash flow model incorporating observable market inputs such as available broker quotes and yields of comparable securities. • Mortgage-backed/asset-backed securities: These securities are comprised of commercial mortgage-backed securities, agency mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities. They are valued based on available trade information, dealer quotes, cash flows, relevant indices and market data for similar assets in active markets. • Preferred securities: Preferred securities are valued by calculating the appropriate spread over a comparable U.S. Treasury security. Inputs include benchmark quotes and other relevant market data. Our Level 3 fair value measures for our other long term investment are provided by a third-party pricing service. We utilize one firm to value our Level 3 other long-term investment. The pricing service is a leading global provider of financial market data, analytics and related services to financial institutions. We utilize the income approach and a discounted cash flow analysis in determining the fair value of our Level 3 other long-term investment. The primary unobservable input utilized in this pricing methodology is the discount rate used which is determined based on underwriting yield, credit spreads, yields on benchmark indices, and comparable public company debt. The discount rate used in our determination of the fair value of our Level 3 other long-term investment as of June 30, 2019 was a range of 7.3% - 7.9% and a weighted-average of 7.5% . Based on the total fair value of our Level 3 other long-term investment as of June 30, 2019 , changes in the discount rate utilized will not result in a fair value significantly different than the amount recorded. Our Level 3 fair value measures for our corporate debt securities relate to multiple investments which are considered immaterial individually and in the aggregate. The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the three and six -month periods ended June 30, 2019 and 2018. Three months ended June 30, 2019 Three months ended June 30, 2018 Other long-term Corporate debt Other long-term Corporate debt investment securities Total investment securities Total (In millions) (In millions) Fair value, beginning balance $ 107 $ 18 $ 125 $ 101 $ 13 $ 114 Transfers to Level 2 — (2 ) (2 ) — — — Paid-in-kind dividends (1) 2 — 2 2 — 2 Net valuation gain (loss) included in earnings (2) 3 — 3 (1 ) — (1 ) Fair value, ending balance $ 112 $ 16 $ 128 $ 102 $ 13 $ 115 Six months ended June 30, 2019 Six months ended June 30, 2018 Other long-term Corporate debt Other long-term Corporate debt investment securities Total investment securities Total (In millions) (In millions) Fair value, beginning balance $ 101 $ 17 $ 118 $ — $ — $ — Fair value of assets associated with the adoption of ASU 2016-01 — — — 100 — 100 Transfers from Level 2 — — — — 13 13 Transfers to Level 2 — (5 ) (5 ) — — — Paid-in-kind dividends (1) 3 1 4 3 — 3 Purchases — 5 5 — — — Sales and maturities — (1 ) (1 ) — — — Net valuation gain included in earnings (2) 8 — 8 (1 ) — (1 ) Net unrealized loss included in other comprehensive earnings (3) — (1 ) (1 ) — — — Fair value, ending balance $ 112 $ 16 $ 128 $ 102 $ 13 $ 115 _____________________________________ (1) Included in Interest and investment income on the Condensed Consolidated Statements of Earnings (2) Included in Realized gains and losses, net on the Condensed Consolidated Statements of Earnings (3) Included in Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) on the Condensed Consolidated Statements of Comprehensive Earnings Transfers into or out of the Level 3 fair value category occur when unobservable inputs become more or less significant to the fair value measurement or upon a change in valuation technique. For the three and six months ended June 30, 2019, transfers between Level 2 and Level 3 are not considered material. For the six months ended June 30, 2018, transfers between Level 2 and Level 3 were based on changes in significance of unobservable inputs used associated with a change in the valuation technique used for certain of the Company’s corporate debt securities and are not considered material to the Company's financial position or results of operations. Substantially all of the unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) on our Condensed Consolidated Statements of Comprehensive Income relate to fixed maturity securities which are considered Level 2 fair value measures. The carrying amounts of short-term investments, accounts receivable and notes receivable approximate fair value due to their short-term nature and/or short time period since consummation. Additional information regarding the fair value of our investment portfolio is included in Note D. Investments |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The carrying amounts and fair values of our available for sale securities at June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 Carrying Cost Unrealized Unrealized Fair Value Basis Gains Losses Value (In millions) Fixed maturity securities available for sale: U.S. government and agencies $ 265 $ 259 $ 6 $ — $ 265 State and political subdivisions 76 74 2 — 76 Corporate debt securities 1,581 1,542 44 (5 ) 1,581 Mortgage-backed/asset-backed securities 73 71 2 — 73 Foreign government bonds 59 61 1 (3 ) 59 Total $ 2,054 $ 2,007 $ 55 $ (8 ) $ 2,054 December 31, 2018 Carrying Cost Unrealized Unrealized Fair Value Basis Gains Losses Value (In millions) Fixed maturity securities available for sale: U.S. government and agencies $ 225 $ 226 $ 1 $ (2 ) $ 225 State and political subdivisions 148 147 1 — 148 Corporate debt securities 1,503 1,510 6 (13 ) 1,503 Mortgage-backed/asset-backed securities 60 59 1 — 60 Foreign government bonds 62 67 — (5 ) 62 Total $ 1,998 $ 2,009 $ 9 $ (20 ) $ 1,998 The cost basis of fixed maturity securities available for sale includes an adjustment for amortized premium or accreted discount since the date of purchase. The following table presents certain information regarding contractual maturities of our fixed maturity securities at June 30, 2019 : June 30, 2019 Amortized % of Fair % of Maturity Cost Total Value Total (Dollars in millions) One year or less $ 328 16 % $ 326 16 % After one year through five years 1,196 59 1,217 59 After five years through ten years 301 15 319 15 After ten years 111 6 119 6 Mortgage-backed/asset-backed securities 71 4 73 4 Total $ 2,007 100 % $ 2,054 100 % Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Because of the potential for prepayment on mortgage-backed and asset-backed securities, they are not categorized by contractual maturity. Net unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 , were as follows (in millions): June 30, 2019 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate debt securities $ 107 $ (4 ) $ 236 $ (1 ) $ 343 $ (5 ) Foreign government bonds — — 33 (3 ) 33 (3 ) Total temporarily impaired securities $ 107 $ (4 ) $ 269 $ (4 ) $ 376 $ (8 ) December 31, 2018 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government and agencies $ 71 $ (1 ) $ 117 $ (1 ) $ 188 $ (2 ) Corporate debt securities 661 (8 ) 301 (5 ) 962 (13 ) Foreign government bonds 52 (3 ) 10 (2 ) 62 (5 ) Total temporarily impaired securities $ 784 $ (12 ) $ 428 $ (8 ) $ 1,212 $ (20 ) We recorded no impairment charges relating to investments during the three or six-month periods ended June 30, 2019 . We recorded $3 million of impairment charges relating to investments during the three and six-month periods ended June 30, 2018. Impairment in the 2018 periods relate to fixed maturity securities of investees entering Chapter 11 bankruptcy which exhibited decreasing fair market values and from which we are uncertain of our ability to recover our initial investment. As of June 30, 2019 and December 31, 2018 , we held no investment securities for which an other-than-temporary impairment had been previously recognized. It is possible that future events may lead us to recognize impairment losses related to our investment portfolio and that unanticipated future events may lead us to dispose of certain investment holdings and recognize the effects of any market movements in our condensed consolidated financial statements. The following tables present realized gains and losses on investments and other assets and proceeds from the sale or maturity of investments and other assets for the three and six -month periods ended June 30, 2019 and 2018 , respectively: Three months ended June 30, 2019 Six months ended June 30, 2019 Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Gross Proceeds from Sale/Maturity Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Gross Proceeds from Sale/Maturity (In millions) (In millions) Sales and maturities of fixed maturity securities available for sale $ 1 $ — $ 1 $ 137 $ 2 $ (1 ) $ 1 $ 372 Sales and maturities of preferred securities — — — 3 — — — 26 Sales of equity securities 1 — 1 82 5 — 5 124 Valuation of equity securities 42 — 168 — Valuation of preferred securities 2 — 13 — Valuation of other long term investments 3 — 7 — Impairment of lease assets (5 ) — (8 ) — Other realized gains and losses, net (3 ) — (3 ) — Total $ 41 $ 222 $ 183 $ 522 Three months ended June 30, 2018 Six months ended June 30, 2018 Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Gross Proceeds from Sale/Maturity Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Gross Proceeds from Sale/Maturity (In millions) (In millions) Sales and maturities of fixed maturity securities available for sale $ 1 $ (3 ) $ (2 ) $ 245 $ 4 $ (3 ) $ 1 $ 543 Sales and maturities of preferred securities 1 — 1 46 1 — — 1 46 Sales of equity securities 3 (4 ) (1 ) 19 3 — (4 ) (1 ) 19 Valuation of equity securities (8 ) — (12 ) — Valuation of preferred securities (5 ) — (8 ) — Property and equipment — — 5 21 Other realized gains and losses, net (1 ) — (1 ) — Total $ (16 ) $ 310 $ (15 ) $ 629 Investment with Related Party Included in equity securities as of June 30, 2019 and December 31, 2018 are 5,706,134 shares of Cannae common stock (NYSE: CNNE) which were purchased during the fourth quarter of 2017 in connection with the split-off of our former portfolio company investments to Cannae. The fair value of our related party investment based on quoted market prices is $165 million and $98 million as of June 30, 2019 and December 31, 2018, respectively. |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes payable consists of the following: June 30, December 31, (In millions) 4.50% Notes, net of discount $ 443 $ 442 5.50% Notes, net of discount 398 398 Revolving Credit Facility (3 ) (4 ) $ 838 $ 836 At June 30, 2019 , the estimated fair value of our unsecured notes payable was approximately $903 million , which was $53 million higher than its carrying value, excluding $12 million of net unamortized debt issuance costs and discount. The fair values of our unsecured notes payable are based on established market prices for the securities on June 30, 2019 and are considered Level 2 financial liabilities. On August 13, 2018, we completed an offering of $450 million in aggregate principal amount of 4.50% notes due August 2028 (the " 4.50% Notes"), pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The 4.50% Notes were priced at 99.252% of par to yield 4.594% annual interest. We pay interest on the 4.50% Notes semi-annually on the 15th of February and August, beginning February 15, 2019. The 4.50% Notes contain customary covenants and events of default for investment grade public debt, which primarily relate to failure to make principal or interest payments. On May 16, 2019, we completed an offering to exchange the 4.50% Notes for substantially identical notes registered pursuant to Rule 424 under the Securities Act of 1933 (the " 4.50% Notes Exchange"). There were no material changes to the terms of the 4.50% Notes as a result of the 4.50% Notes Exchange and all holders of the 4.50% Notes accepted the offer to exchange. On June 25, 2013, FNF entered into an agreement to amend and restate our existing $800 million Second Amended and Restated Credit Agreement (the “Existing Credit Agreement”), dated as of April 16, 2012 with Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”) and the other agents party thereto (the “Revolving Credit Facility”). On April 27, 2017, the Existing Credit Agreement was amended (the "Restated Credit Agreement").The material terms of the Restated Credit Agreement are set forth in our Annual Report for the year ended December 31, 2018. As of June 30, 2019 , there was no principal outstanding, $3 million of unamortized debt issuance costs, and $800 million of available borrowing capacity under the Revolving Credit Facility. On August 28, 2012, FNF completed an offering of $400 million in aggregate principal amount of 5.50% notes due September 2022 (the " 5.50% Notes"), pursuant to an effective registration statement previously filed with the Securities Exchange Commission ("SEC"). The material terms of the 5.50% Notes are set forth in our Annual Report for the year ended December 31, 2018. Gross principal maturities of notes payable at June 30, 2019 are as follows (in millions): 2019 (remaining) $ — 2020 — 2021 — 2022 400 2023 — Thereafter 450 $ 850 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and Regulatory Contingencies In the ordinary course of business, we are involved in various pending and threatened litigation matters related to our operations, some of which include claims for punitive or exemplary damages. With respect to our title insurance operations, this customary litigation includes but is not limited to a wide variety of cases arising out of or related to title and escrow claims, for which we make provisions through our loss reserves. Additionally, like other companies, our ordinary course litigation includes a number of class action and purported class action lawsuits, which make allegations related to aspects of our operations. We believe that no actions, other than the matters discussed below, if any, depart from customary litigation incidental to our business. We review lawsuits and other legal and regulatory matters (collectively “legal proceedings”) on an ongoing basis when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, management bases its decision on its assessment of the ultimate outcome assuming all appeals have been exhausted. For legal proceedings in which it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and which represents our best estimate has been recorded. Our accrual for legal and regulatory matters was $12 million and $11 million as of June 30, 2019 and December 31, 2018 , respectively. None of the amounts we have currently recorded are considered to be material to our financial condition individually or in the aggregate. Actual losses may materially differ from the amounts recorded and the ultimate outcome of our pending legal proceedings is generally not yet determinable. While some of these matters could be material to our operating results or cash flows for any particular period if an unfavorable outcome results, at present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. In a class action captioned Patterson, et al. v. Fidelity National Title Insurance Company, et al. , Case No. GD 03-021176, originally filed on October 27, 2003 and pending in the Court of Common Pleas of Allegheny County, Pennsylvania, plaintiffs allege the named Company underwriters violated Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (“UTPCPL”) by failing to provide premium discounts in accordance with filed rates in refinancing transactions. Contrary to rulings in similar federal court cases that considered the rate rule and agreed with the Company’s position, the court held that the rate rule should be interpreted such that an institutional mortgage in the public record is a “proxy” for prior title insurance entitling a consumer to a discount rate when refinancing when there is a mortgage of record within the number of years required by the rate rule. The rate rule requires sufficient evidence of a prior policy, and because not all institutional mortgages were insured, the Company’s position is that a recorded first mortgage alone does not constitute sufficient evidence of an earlier policy entitling consumers to a discounted rate. The court certified the class refusing to follow prior Pennsylvania Supreme Court and appellate court decisions holding that the UTPCPL requires proof of reliance, an individual issue that precludes certification. After notice to the class, plaintiffs moved for partial summary judgment on liability, and defendants moved for summary judgment. On June 27, 2018, the court entered an order granting plaintiffs’ motion for partial summary judgment on liability, and denying the Company’s motion. The court also determined that a multiplier of 1.5, not treble, should be applied to the amount of damages, if any, proven by class members at trial and that the plaintiffs should bear the responsibility of identifying class members and calculating damages. The Company sought permission from the Pennsylvania Superior Court to appeal both the liability and damage multiplier issues; however, the petition was denied. The Company has filed a petition with the Pennsylvania Supreme Court requesting permission to appeal on the merits, or in the alternative, an order directing the Pennsylvania Superior Court to grant interlocutory review. There has been no determination as to the size of the class. It is unknown whether plaintiffs will seek statutory or actual damages, or whether the judge will exercise discretion to award prejudgment interest or reasonable attorneys’ fees. Accordingly, damages are not reasonably estimable at this time. We will continue to vigorously defend this matter, and we do not believe the result will have a material adverse effect on our financial condition. From time to time we receive inquiries and requests for information from state insurance departments, attorneys general and other regulatory agencies about various matters relating to our business. Sometimes these take the form of civil investigative demands or subpoenas. We cooperate with all such inquiries and we have responded to or are currently responding to inquiries from multiple governmental agencies. Also, regulators and courts have been dealing with issues arising from foreclosures and related processes and documentation. Various governmental entities are studying the title insurance product, market, pricing, and business practices, and potential regulatory and legislative changes, which may materially affect our business and operations. From time to time, we are assessed fines for violations of regulations or other matters or enter into settlements with such authorities which may require us to pay fines or claims or take other actions. We do not anticipate such fines and settlements, either individually or in the aggregate, will have a material adverse effect on our financial condition. |
Dividends
Dividends | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Dividends | Dividends On July 16, 2019 , our Board of Directors declared cash dividends of $ 0.31 per share, payable on September 30, 2019 , to FNF common shareholders of record as of September 16, 2019 . |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Summarized financial information concerning our reportable segments is shown in the following tables. As of and for the three months ended June 30, 2019 : Title Corporate and Other Total (In millions) Title premiums $ 1,379 $ — $ 1,379 Other revenues 613 52 665 Revenues from external customers 1,992 52 2,044 Interest and investment income, including realized gains and losses 100 — 100 Total revenues 2,092 52 2,144 Depreciation and amortization 38 6 44 Interest expense — 12 12 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 387 (34 ) 353 Income tax expense (benefit) 95 (9 ) 86 Earnings (loss) before equity in earnings of unconsolidated affiliates 292 (25 ) 267 Equity in earnings of unconsolidated affiliates 3 — 3 Net earnings (loss) $ 295 $ (25 ) $ 270 Assets $ 9,040 $ 1,149 $ 10,189 Goodwill 2,461 264 2,725 As of and for the three months ended June 30, 2018 : Title Corporate and Other Total (In millions) Title premiums $ 1,331 $ — $ 1,331 Other revenues 600 165 765 Revenues from external customers 1,931 165 2,096 Interest and investment income, including realized gains and losses 27 — 27 Total revenues 1,958 165 2,123 Depreciation and amortization 38 7 45 Interest expense — 11 11 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 300 (25 ) 275 Income tax expense (benefit) 29 (7 ) 22 Earnings (loss) before equity in earnings of unconsolidated affiliates 271 (18 ) 253 Equity in earnings of unconsolidated affiliates 1 — 1 Net earnings (loss) $ 272 $ (18 ) $ 254 Assets $ 8,540 $ 714 $ 9,254 Goodwill 2,447 317 2,764 As of and for the six months ended June 30, 2019 : Title Corporate and Other Total (In millions) Title premiums $ 2,371 $ — $ 2,371 Other revenues 1,094 105 1,199 Revenues from external customers 3,465 105 3,570 Interest and investment income, including realized gains and losses 290 6 296 Total revenues 3,755 111 3,866 Depreciation and amortization 77 11 88 Interest expense — 24 24 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 679 (62 ) 617 Income tax expense (benefit) 166 (15 ) 151 Earnings (loss) before equity in earnings of unconsolidated affiliates 513 (47 ) 466 Equity in earnings of unconsolidated affiliates 10 — 10 Net earnings (loss) $ 523 $ (47 ) $ 476 Assets $ 9,040 $ 1,149 $ 10,189 Goodwill 2,461 264 2,725 As of and for the six months ended June 30, 2018 : Title Corporate and Other Total (In millions) Title premiums $ 2,367 $ — $ 2,367 Other revenues 1,116 267 1,383 Revenues from external customers 3,483 267 3,750 Interest and investment income, including realized gains and losses 65 1 66 Total revenues 3,548 268 3,816 Depreciation and amortization 78 14 92 Interest expense — 22 22 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 463 (61 ) 402 Income tax expense (benefit) 69 (16 ) 53 Earnings (loss) before equity in earnings of unconsolidated affiliates 394 (45 ) 349 Equity in earnings of unconsolidated affiliates 2 1 3 Net earnings (loss) $ 396 $ (44 ) $ 352 Assets $ 8,540 $ 714 $ 9,254 Goodwill 2,447 317 2,764 The activities in our segments include the following: • Title. This segment consists of the operations of our title insurance underwriters and related businesses. This segment provides core title insurance and escrow and other title-related services including trust activities, trustee sales guarantees, and home warranty products. This segment also includes our transaction services business, which includes other title-related services used in the production and management of mortgage loans, including mortgage loans that experience default. • Corporate and Other. This segment consists of the operations of the parent holding company, our real estate technology subsidiaries and our remaining real estate brokerage businesses. This segment includes the results of operations of Pacific Union International, Inc. ("Pacific Union") through September 24, 2018, the date we closed on the sale of all of our equity interest in, and notes outstanding from, Pacific Union. This segment also includes certain other unallocated corporate overhead expenses and eliminations of revenues and expenses between it and our Title segment. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities. Six months ended June 30, 2019 2018 Cash paid for: Interest $ 22 $ 18 Income taxes 78 112 Non-cash investing and financing activities: Change in proceeds of sales of investments available for sale receivable in period $ (6 ) $ 5 Change in purchases of investments available for sale payable in period (4 ) — Change in accrual for unsettled repurchases of formerly outstanding debt instruments — (11 ) Lease liabilities recognized in exchange for lease right-of-use assets 15 — Remeasurement of lease liabilities 42 — |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted Accounting Standard Codification ("ASC") Topic 606 by applying the modified retrospective method. The adoption of ASC Topic 606 did not have an impact on the recognition of our primary sources of revenue, direct and agency title premiums, as those revenue streams are subject to the accounting and reporting requirements under ASC Topic 944. Timing of recognition of substantially all of our remaining revenue was also not impacted and we therefore did not record any cumulative effect adjustment to opening equity. Disaggregation of Revenue Our revenue consists of: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Revenue Stream Income Statement Classification Segment Total Revenue Revenue from insurance contracts: (in millions) Direct title insurance premiums Direct title insurance premiums Title $ 625 $ 599 $ 1,065 $ 1,071 Agency title insurance premiums Agency title insurance premiums Title 754 732 1,306 1,296 Home warranty Escrow, title-related and other fees Title 46 46 87 91 Total revenue from insurance contracts 1,425 1,377 2,458 2,458 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Title 237 235 402 418 Other title-related fees and income Escrow, title-related and other fees Title 165 162 301 303 ServiceLink, excluding title premiums, escrow fees, and subservicing fees Escrow, title-related and other fees Title 97 104 180 198 Real estate technology Escrow, title-related and other fees Corporate and other 26 27 51 52 Real estate brokerage Escrow, title-related and other fees Corporate and other 14 134 21 210 Other Escrow, title-related and other fees Corporate and other 12 4 33 5 Total revenue from contracts with customers 551 666 988 1,186 Other revenue: Loan subservicing revenue Escrow, title-related and other fees Title 68 53 124 106 Interest and investment income Interest and investment income Various 59 43 113 81 Realized gains and losses, net Realized gains and losses, net Various 41 (16 ) 183 (15 ) Total revenues Total revenues $ 2,144 $ 2,123 3,866 3,816 Our Direct title insurance premiums are recognized as revenue at the time of closing of the underlying transaction as the earnings process is then considered complete. Regulation of title insurance rates varies by state. Premiums are charged to customers based on rates predetermined in coordination with each states' respective Department of Insurance. Cash associated with such revenue is typically collected at closing of the underlying real estate transaction. Premium revenues from agency title operations are recognized when the underlying title order and transaction closing, if applicable, are complete. Revenues from our home warranty business are generated from contracts with customers to provide warranty for major home appliances. Substantially all of our home warranty contracts are one year in length and revenue is recognized ratably over the term of the contract. Escrow fees and Other title-related fees and income in our Title segment are closely related to Direct title insurance premiums and are primarily associated with managing the closing of real estate transactions including the processing of funds on behalf of the transaction participants, gathering and recording the required closing documents, providing notary and home inspection services, and other real estate or title-related activities. Revenue is primarily recognized upon closing of the underlying real estate transaction or completion of services. Cash associated with such revenue is typically collected at closing. Revenues from ServiceLink, excluding its title premiums, escrow fees, and loan subservicing fees primarily include revenues from real estate appraisal services and foreclosure processing and facilitation services. Revenues from real estate appraisal services are recognized when all appraisal work is complete, a final report is issued to the client and the client is billed. Revenues from foreclosure processing and facilitation services are primarily recognized upon completion of the services and when billing to the client is complete. Real estate technology revenues are primarily comprised of subscription fees for use of software provided to real estate professionals. Subscriptions are only offered on a month-by-month basis and fees are billed monthly. Revenue is recognized in the month services are provided. Real estate brokerage revenues are primarily comprised of commission revenues earned in association with the facilitation of real estate transactions and are recognized upon closing of the sale of the underlying real estate transaction. Loan subservicing revenues are generated by certain subsidiaries of ServiceLink and are associated with the servicing of mortgage loans on behalf of its customers. Revenue is recognized when the underlying work is performed and billed. Loan subservicing revenues are subject to the recognition requirements of ASC Topic 860. Interest and investment income consists primarily of interest payments received on fixed maturity security holdings and dividends received on equity and preferred security holdings. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, primarily related to revenue from our home warranty business, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Contract Balances The following table provides information about trade receivables and deferred revenue: June 30, 2019 December 31, 2018 (In millions) Trade receivables $ 337 $ 284 Deferred revenue (contract liabilities) 112 105 Deferred revenue is recorded primarily for our home warranty contracts. Revenues from home warranty products are recognized over the life of the policy, which is primarily one year . The unrecognized portion is recorded as deferred revenue in accounts payable and other accrued liabilities in the Condensed Consolidated Balance Sheets. During the three and six months ended June 30, 2019 , we recognized $44 million and $78 million of revenue, respectively, which was included in deferred revenue at the beginning of the period. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We adopted ASC Topic 842 on January 1, 2019 using a modified retrospective approach. Prior year periods continue to be reported under ASC Topic 840. See Note A Basis of Financial Statements for further discussion of the current period effects of adoption of ASU No. 2016-02 Leases (Topic 842). Right-of-use assets and lease liabilities related to operating leases under ASC Topic 842 are recorded when we are party to a contract which conveys the right for the Company to control an asset for a specified period of time. Substantially all of our operating lease arrangements relate to rented office space and real estate for our title operations. We generally are not a party to any material contracts considered finance leases. Right-of-use assets and lease liabilities under ASC Topic 842 are recorded as Lease assets and Lease liabilities, respectively, on the Condensed Consolidated Balance Sheet as of June 30, 2019 . Our operating leases range in term from one to ten years . As of June 30, 2019 , the weighted-average remaining lease term of our operating leases was 4.2 years. Our lease agreements do not contain material variable lease payments, buyout options, residual value guarantees or restrictive covenants. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term by varying amounts. The exercise of lease renewal options is at our sole discretion. We do not include options to renew in our measurement of right-of-use assets and lease liabilities as they are not considered reasonably assured of exercise. Our operating lease liability is determined by discounting future lease payments using a discount rate based on the Company's incremental borrowing rate for similar collateralized borrowing. The discount rate is calculated as an average of the current yield on our unsecured notes payable and 140 basis points in excess of the current five year LIBOR swap rate. As of June 30, 2019 the weighted-average discount rate used to determine our operating lease liability was 4.37% . We do not separate lease components from non-lease components for any of our right-of-use assets. Our lease costs are included in Other operating expenses on the Condensed Consolidated Statements of Income and were $36 million and $73 million for the three and six-month periods ended June 30, 2019 , respectively. We do not have any material short term lease costs, variable lease costs, or sublease income. Future payments under operating lease arrangements accounted for under ASC Topic 842 as of June 30, 2019 are as follows (in millions): 2019 (remaining) $ 74 2020 130 2021 102 2022 75 2023 47 Thereafter 42 Total operating lease payments, undiscounted $ 470 Less: present value discount 42 Lease liability, at present value $ 428 Future payments under operating lease arrangements accounted for under ASC Topic 840 as of December 31, 2018 are as follows (in millions): 2019 $ 145 2020 121 2021 93 2022 68 2023 41 Thereafter 28 Total future minimum operating lease payments $ 496 See Note I. Supplemental Cash Flow Information for certain information on noncash investing and financing activities related to our operating lease arrangements. |
Basis of Financial Statements (
Basis of Financial Statements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | The financial information in this report presented for interim periods is unaudited and includes the accounts of Fidelity National Financial, Inc. and its subsidiaries (collectively, “we,” “us,” “our,” or “FNF”) prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2018 . |
Earnings Per Share | Earnings Per Share Basic earnings per share, as presented on the Condensed Consolidated Statement of Earnings, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such period. In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus the impact of assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted earnings per share is equal to basic earnings per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. We have granted certain stock options, shares of restricted stock, convertible debt instruments and certain other convertible share based payments which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 Leases (Topic 842) . The amendments in this ASU introduce broad changes to the accounting and reporting for leases by lessees. The main provisions of the new standard include: clarifications to the definitions of a lease, components of leases, and criteria for determining lease classification; requiring virtually all leased assets, including operating leases and related liabilities resulting from applying the fair value measurement, to be reflected on the lessee's balance sheet; and expanding and adding to the required disclosures for lessees. In July 2018, the FASB issued ASU 2018-11 Leases (Topic 842): Targeted Improvements which allows entities the option to adopt this standard using a modified retrospective approach with a cumulative-effect adjustment to opening equity at the adoption date and include required disclosures for prior periods. We adopted Topic 842 on January 1, 2019 using a modified retrospective approach and recorded lease right-of-use assets ("Lease assets") of $421 million and liabilities for future discounted lease payment obligations ("Lease liabilities") of $437 million at the date of adoption. The adoption also resulted in a decrease of $9 million and $25 million to our Prepaid expenses and other assets and Accounts payable and accrued liabilities, respectively. There was no impact to opening equity as a result of the adoption. We elected to apply the following package of practical expedients on a consistent basis permitting entities not to reassess: (i) whether any expired or existing contracts are or contain a lease; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance. See Note K. Leases for further discussion of our leasing arrangements and related accounting. Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . The amendments in this ASU introduce broad changes to accounting for credit impairment of financial instruments. The primary updates include the introduction of a new current expected credit loss ("CECL") model that is based on expected rather than incurred losses and amendments to the accounting for impairment of fixed maturity securities available for sale. This update is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. We are still evaluating the effect this new guidance will have on our consolidated financial statements and related disclosures and have not yet concluded on its effects. We do not plan to early adopt the standard. On January 1, 2018, we adopted Accounting Standard Codification ("ASC") Topic 606 by applying the modified retrospective method. The adoption of ASC Topic 606 did not have an impact on the recognition of our primary sources of revenue, direct and agency title premiums, as those revenue streams are subject to the accounting and reporting requirements under ASC Topic 944. Timing of recognition of substantially all of our remaining revenue was also not impacted and we therefore did not record any cumulative effect adjustment to opening equity. |
Insurance Premiums Revenue Recognition | Our Direct title insurance premiums are recognized as revenue at the time of closing of the underlying transaction as the earnings process is then considered complete. Regulation of title insurance rates varies by state. Premiums are charged to customers based on rates predetermined in coordination with each states' respective Department of Insurance. Cash associated with such revenue is typically collected at closing of the underlying real estate transaction. Premium revenues from agency title operations are recognized when the underlying title order and transaction closing, if applicable, are complete. Revenues from our home warranty business are generated from contracts with customers to provide warranty for major home appliances. Substantially all of our home warranty contracts are one year in length and revenue is recognized ratably over the term of the contract. |
Revenue Recognition, Services, Real Estate Transactions | Escrow fees and Other title-related fees and income in our Title segment are closely related to Direct title insurance premiums and are primarily associated with managing the closing of real estate transactions including the processing of funds on behalf of the transaction participants, gathering and recording the required closing documents, providing notary and home inspection services, and other real estate or title-related activities. Revenue is primarily recognized upon closing of the underlying real estate transaction or completion of services. Cash associated with such revenue is typically collected at closing. Revenues from ServiceLink, excluding its title premiums, escrow fees, and loan subservicing fees primarily include revenues from real estate appraisal services and foreclosure processing and facilitation services. Revenues from real estate appraisal services are recognized when all appraisal work is complete, a final report is issued to the client and the client is billed. Revenues from foreclosure processing and facilitation services are primarily recognized upon completion of the services and when billing to the client is complete. Real estate technology revenues are primarily comprised of subscription fees for use of software provided to real estate professionals. Subscriptions are only offered on a month-by-month basis and fees are billed monthly. Revenue is recognized in the month services are provided. Real estate brokerage revenues are primarily comprised of commission revenues earned in association with the facilitation of real estate transactions and are recognized upon closing of the sale of the underlying real estate transaction. Loan subservicing revenues are generated by certain subsidiaries of ServiceLink and are associated with the servicing of mortgage loans on behalf of its customers. Revenue is recognized when the underlying work is performed and billed. Loan subservicing revenues are subject to the recognition requirements of ASC Topic 860. |
Revenue Recognition, Other | Interest and investment income consists primarily of interest payments received on fixed maturity security holdings and dividends received on equity and preferred security holdings. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, primarily related to revenue from our home warranty business, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Summary of Reserve for Claims_2
Summary of Reserve for Claims Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Summary of the Reserve for Claim Losses | A summary of the reserve for claim losses follows: Six months ended June 30, 2019 2018 (Dollars in millions) Beginning balance $ 1,488 $ 1,490 Claim loss provision related to: Current year 107 107 Prior years — — Total title claim loss provision 107 107 Claims paid, net of recoupments related to: Current year (2 ) (3 ) Prior years (113 ) (107 ) Total title claims paid, net of recoupments (115 ) (110 ) Ending balance of claim loss reserve for title insurance $ 1,480 $ 1,487 Provision for title insurance claim losses as a percentage of title insurance premiums 4.5 % 4.5 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 , respectively: June 30, 2019 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities available for sale: U.S. government and agencies $ — $ 265 $ — $ 265 State and political subdivisions — 76 — 76 Corporate debt securities — 1,565 16 1,581 Mortgage-backed/asset-backed securities — 73 — 73 Foreign government bonds — 59 — 59 Preferred securities 18 269 — 287 Equity securities 690 — — 690 Other long-term investment — — 112 112 Total assets $ 708 $ 2,307 $ 128 $ 3,143 December 31, 2018 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities available for sale: U.S. government and agencies $ — $ 225 $ — $ 225 State and political subdivisions — 148 — 148 Corporate debt securities — 1,486 17 1,503 Mortgage-backed/asset-backed securities — 60 — 60 Foreign government bonds — 62 — 62 Preferred securities 16 285 — 301 Equity securities 498 — — 498 Other long-term investment — — 101 101 Total assets $ 514 $ 2,266 $ 118 $ 2,898 |
Fair Values of Level 3 Assets Measured on Recurring Basis | The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the three and six -month periods ended June 30, 2019 and 2018. Three months ended June 30, 2019 Three months ended June 30, 2018 Other long-term Corporate debt Other long-term Corporate debt investment securities Total investment securities Total (In millions) (In millions) Fair value, beginning balance $ 107 $ 18 $ 125 $ 101 $ 13 $ 114 Transfers to Level 2 — (2 ) (2 ) — — — Paid-in-kind dividends (1) 2 — 2 2 — 2 Net valuation gain (loss) included in earnings (2) 3 — 3 (1 ) — (1 ) Fair value, ending balance $ 112 $ 16 $ 128 $ 102 $ 13 $ 115 Six months ended June 30, 2019 Six months ended June 30, 2018 Other long-term Corporate debt Other long-term Corporate debt investment securities Total investment securities Total (In millions) (In millions) Fair value, beginning balance $ 101 $ 17 $ 118 $ — $ — $ — Fair value of assets associated with the adoption of ASU 2016-01 — — — 100 — 100 Transfers from Level 2 — — — — 13 13 Transfers to Level 2 — (5 ) (5 ) — — — Paid-in-kind dividends (1) 3 1 4 3 — 3 Purchases — 5 5 — — — Sales and maturities — (1 ) (1 ) — — — Net valuation gain included in earnings (2) 8 — 8 (1 ) — (1 ) Net unrealized loss included in other comprehensive earnings (3) — (1 ) (1 ) — — — Fair value, ending balance $ 112 $ 16 $ 128 $ 102 $ 13 $ 115 _____________________________________ (1) Included in Interest and investment income on the Condensed Consolidated Statements of Earnings (2) Included in Realized gains and losses, net on the Condensed Consolidated Statements of Earnings (3) Included in Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) on the Condensed Consolidated Statements of Comprehensive Earnings |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Carrying Amount and Fair Value of Available-for-sale Securities | The carrying amounts and fair values of our available for sale securities at June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 Carrying Cost Unrealized Unrealized Fair Value Basis Gains Losses Value (In millions) Fixed maturity securities available for sale: U.S. government and agencies $ 265 $ 259 $ 6 $ — $ 265 State and political subdivisions 76 74 2 — 76 Corporate debt securities 1,581 1,542 44 (5 ) 1,581 Mortgage-backed/asset-backed securities 73 71 2 — 73 Foreign government bonds 59 61 1 (3 ) 59 Total $ 2,054 $ 2,007 $ 55 $ (8 ) $ 2,054 December 31, 2018 Carrying Cost Unrealized Unrealized Fair Value Basis Gains Losses Value (In millions) Fixed maturity securities available for sale: U.S. government and agencies $ 225 $ 226 $ 1 $ (2 ) $ 225 State and political subdivisions 148 147 1 — 148 Corporate debt securities 1,503 1,510 6 (13 ) 1,503 Mortgage-backed/asset-backed securities 60 59 1 — 60 Foreign government bonds 62 67 — (5 ) 62 Total $ 1,998 $ 2,009 $ 9 $ (20 ) $ 1,998 |
Investments Classified by Contractual Maturity Dates | The following table presents certain information regarding contractual maturities of our fixed maturity securities at June 30, 2019 : June 30, 2019 Amortized % of Fair % of Maturity Cost Total Value Total (Dollars in millions) One year or less $ 328 16 % $ 326 16 % After one year through five years 1,196 59 1,217 59 After five years through ten years 301 15 319 15 After ten years 111 6 119 6 Mortgage-backed/asset-backed securities 71 4 73 4 Total $ 2,007 100 % $ 2,054 100 % |
Schedule of Temporary Impairment Losses, Investments | Net unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 , were as follows (in millions): June 30, 2019 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate debt securities $ 107 $ (4 ) $ 236 $ (1 ) $ 343 $ (5 ) Foreign government bonds — — 33 (3 ) 33 (3 ) Total temporarily impaired securities $ 107 $ (4 ) $ 269 $ (4 ) $ 376 $ (8 ) December 31, 2018 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government and agencies $ 71 $ (1 ) $ 117 $ (1 ) $ 188 $ (2 ) Corporate debt securities 661 (8 ) 301 (5 ) 962 (13 ) Foreign government bonds 52 (3 ) 10 (2 ) 62 (5 ) Total temporarily impaired securities $ 784 $ (12 ) $ 428 $ (8 ) $ 1,212 $ (20 ) |
Realized Gains and Losses and Proceeds From Sales on Investments and Other Assets | The following tables present realized gains and losses on investments and other assets and proceeds from the sale or maturity of investments and other assets for the three and six -month periods ended June 30, 2019 and 2018 , respectively: Three months ended June 30, 2019 Six months ended June 30, 2019 Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Gross Proceeds from Sale/Maturity Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Gross Proceeds from Sale/Maturity (In millions) (In millions) Sales and maturities of fixed maturity securities available for sale $ 1 $ — $ 1 $ 137 $ 2 $ (1 ) $ 1 $ 372 Sales and maturities of preferred securities — — — 3 — — — 26 Sales of equity securities 1 — 1 82 5 — 5 124 Valuation of equity securities 42 — 168 — Valuation of preferred securities 2 — 13 — Valuation of other long term investments 3 — 7 — Impairment of lease assets (5 ) — (8 ) — Other realized gains and losses, net (3 ) — (3 ) — Total $ 41 $ 222 $ 183 $ 522 Three months ended June 30, 2018 Six months ended June 30, 2018 Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Gross Proceeds from Sale/Maturity Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Gross Proceeds from Sale/Maturity (In millions) (In millions) Sales and maturities of fixed maturity securities available for sale $ 1 $ (3 ) $ (2 ) $ 245 $ 4 $ (3 ) $ 1 $ 543 Sales and maturities of preferred securities 1 — 1 46 1 — — 1 46 Sales of equity securities 3 (4 ) (1 ) 19 3 — (4 ) (1 ) 19 Valuation of equity securities (8 ) — (12 ) — Valuation of preferred securities (5 ) — (8 ) — Property and equipment — — 5 21 Other realized gains and losses, net (1 ) — (1 ) — Total $ (16 ) $ 310 $ (15 ) $ 629 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable consists of the following: June 30, December 31, (In millions) 4.50% Notes, net of discount $ 443 $ 442 5.50% Notes, net of discount 398 398 Revolving Credit Facility (3 ) (4 ) $ 838 $ 836 |
Schedule of Principal Maturities of Notes Payable | Gross principal maturities of notes payable at June 30, 2019 are as follows (in millions): 2019 (remaining) $ — 2020 — 2021 — 2022 400 2023 — Thereafter 450 $ 850 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Summarized financial information concerning our reportable segments is shown in the following tables. As of and for the three months ended June 30, 2019 : Title Corporate and Other Total (In millions) Title premiums $ 1,379 $ — $ 1,379 Other revenues 613 52 665 Revenues from external customers 1,992 52 2,044 Interest and investment income, including realized gains and losses 100 — 100 Total revenues 2,092 52 2,144 Depreciation and amortization 38 6 44 Interest expense — 12 12 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 387 (34 ) 353 Income tax expense (benefit) 95 (9 ) 86 Earnings (loss) before equity in earnings of unconsolidated affiliates 292 (25 ) 267 Equity in earnings of unconsolidated affiliates 3 — 3 Net earnings (loss) $ 295 $ (25 ) $ 270 Assets $ 9,040 $ 1,149 $ 10,189 Goodwill 2,461 264 2,725 As of and for the three months ended June 30, 2018 : Title Corporate and Other Total (In millions) Title premiums $ 1,331 $ — $ 1,331 Other revenues 600 165 765 Revenues from external customers 1,931 165 2,096 Interest and investment income, including realized gains and losses 27 — 27 Total revenues 1,958 165 2,123 Depreciation and amortization 38 7 45 Interest expense — 11 11 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 300 (25 ) 275 Income tax expense (benefit) 29 (7 ) 22 Earnings (loss) before equity in earnings of unconsolidated affiliates 271 (18 ) 253 Equity in earnings of unconsolidated affiliates 1 — 1 Net earnings (loss) $ 272 $ (18 ) $ 254 Assets $ 8,540 $ 714 $ 9,254 Goodwill 2,447 317 2,764 As of and for the six months ended June 30, 2019 : Title Corporate and Other Total (In millions) Title premiums $ 2,371 $ — $ 2,371 Other revenues 1,094 105 1,199 Revenues from external customers 3,465 105 3,570 Interest and investment income, including realized gains and losses 290 6 296 Total revenues 3,755 111 3,866 Depreciation and amortization 77 11 88 Interest expense — 24 24 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 679 (62 ) 617 Income tax expense (benefit) 166 (15 ) 151 Earnings (loss) before equity in earnings of unconsolidated affiliates 513 (47 ) 466 Equity in earnings of unconsolidated affiliates 10 — 10 Net earnings (loss) $ 523 $ (47 ) $ 476 Assets $ 9,040 $ 1,149 $ 10,189 Goodwill 2,461 264 2,725 As of and for the six months ended June 30, 2018 : Title Corporate and Other Total (In millions) Title premiums $ 2,367 $ — $ 2,367 Other revenues 1,116 267 1,383 Revenues from external customers 3,483 267 3,750 Interest and investment income, including realized gains and losses 65 1 66 Total revenues 3,548 268 3,816 Depreciation and amortization 78 14 92 Interest expense — 22 22 Earnings (loss) before income taxes and equity in earnings of unconsolidated affiliates 463 (61 ) 402 Income tax expense (benefit) 69 (16 ) 53 Earnings (loss) before equity in earnings of unconsolidated affiliates 394 (45 ) 349 Equity in earnings of unconsolidated affiliates 2 1 3 Net earnings (loss) $ 396 $ (44 ) $ 352 Assets $ 8,540 $ 714 $ 9,254 Goodwill 2,447 317 2,764 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow information | The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities. Six months ended June 30, 2019 2018 Cash paid for: Interest $ 22 $ 18 Income taxes 78 112 Non-cash investing and financing activities: Change in proceeds of sales of investments available for sale receivable in period $ (6 ) $ 5 Change in purchases of investments available for sale payable in period (4 ) — Change in accrual for unsettled repurchases of formerly outstanding debt instruments — (11 ) Lease liabilities recognized in exchange for lease right-of-use assets 15 — Remeasurement of lease liabilities 42 — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Our revenue consists of: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Revenue Stream Income Statement Classification Segment Total Revenue Revenue from insurance contracts: (in millions) Direct title insurance premiums Direct title insurance premiums Title $ 625 $ 599 $ 1,065 $ 1,071 Agency title insurance premiums Agency title insurance premiums Title 754 732 1,306 1,296 Home warranty Escrow, title-related and other fees Title 46 46 87 91 Total revenue from insurance contracts 1,425 1,377 2,458 2,458 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Title 237 235 402 418 Other title-related fees and income Escrow, title-related and other fees Title 165 162 301 303 ServiceLink, excluding title premiums, escrow fees, and subservicing fees Escrow, title-related and other fees Title 97 104 180 198 Real estate technology Escrow, title-related and other fees Corporate and other 26 27 51 52 Real estate brokerage Escrow, title-related and other fees Corporate and other 14 134 21 210 Other Escrow, title-related and other fees Corporate and other 12 4 33 5 Total revenue from contracts with customers 551 666 988 1,186 Other revenue: Loan subservicing revenue Escrow, title-related and other fees Title 68 53 124 106 Interest and investment income Interest and investment income Various 59 43 113 81 Realized gains and losses, net Realized gains and losses, net Various 41 (16 ) 183 (15 ) Total revenues Total revenues $ 2,144 $ 2,123 3,866 3,816 |
Information about Trade Receivables and Deferred Revenue | The following table provides information about trade receivables and deferred revenue: June 30, 2019 December 31, 2018 (In millions) Trade receivables $ 337 $ 284 Deferred revenue (contract liabilities) 112 105 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Future Payments Under Operating Lease Arrangements Accounted for Under ASC Topic 842 | Future payments under operating lease arrangements accounted for under ASC Topic 842 as of June 30, 2019 are as follows (in millions): 2019 (remaining) $ 74 2020 130 2021 102 2022 75 2023 47 Thereafter 42 Total operating lease payments, undiscounted $ 470 Less: present value discount 42 Lease liability, at present value $ 428 |
Future Payments Under Operating Leases Accounted for Under ASC Topic 840 | Future payments under operating lease arrangements accounted for under ASC Topic 840 as of December 31, 2018 are as follows (in millions): 2019 $ 145 2020 121 2021 93 2022 68 2023 41 Thereafter 28 Total future minimum operating lease payments $ 496 |
Basis of Financial Statements -
Basis of Financial Statements - Recent Developments (Details) - USD ($) | Jun. 12, 2019 | Nov. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 05, 2019 | Feb. 07, 2019 |
Business Acquisition [Line Items] | ||||||
Proceeds from repayment of Cannae Holdings Inc. note receivable | $ 100,000,000 | $ 0 | ||||
Revolving Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Revolver note issued aggregate principal (up to) | $ 100,000,000 | |||||
Matures on anniversary of the date of the revolver note (in years) | 5 years | |||||
Automatic extension for additional term (in years) | 5 years | |||||
Revolving Credit Facility | Cannae Revolver | Borrowing Under Line Of Credit | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from repayment of Cannae Holdings Inc. note receivable | $ 100,000,000 | |||||
Borrowing under Cannae Revolver | $ 100,000,000 | |||||
Revolving Credit Facility | Cannae Revolver | Borrowing Under Line Of Credit | Subsequent Event | ||||||
Business Acquisition [Line Items] | ||||||
Borrowing under Cannae Revolver | $ 100,000,000 | |||||
Revolving Credit Facility | LIBOR | ||||||
Business Acquisition [Line Items] | ||||||
Basis spread on variable rate (as percent) | 4.50% |
Basis of Financial Statements_2
Basis of Financial Statements - Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Income tax expense | $ 86 | $ 22 | $ 151 | $ 53 |
Income tax expense as a percentage of earnings before income taxes, percent | 24.00% | 8.00% | 24.00% | 13.00% |
Basis of Financial Statements_3
Basis of Financial Statements - Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Antidilutive instruments (in shares) | 0 | 0 | 0 | 0 |
Basis of Financial Statements_4
Basis of Financial Statements - Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right-of-use asset | $ 402 | $ 0 | |
Lease liability | 428 | 0 | |
Prepaid expenses and other assets | (422) | (377) | |
Accounts payable and accrued expenses | $ (925) | $ (956) | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right-of-use asset | $ 421 | ||
Lease liability | 437 | ||
Prepaid expenses and other assets | 9 | ||
Accounts payable and accrued expenses | $ 25 |
Summary of Reserve for Claims_3
Summary of Reserve for Claims Losses (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 1,488 | $ 1,490 |
Claim loss provision related to: | ||
Current year | 107 | 107 |
Prior years | 0 | 0 |
Total title claim loss provision | 107 | 107 |
Claims paid, net of recoupments related to: | ||
Current year | (2) | (3) |
Prior years | (113) | (107) |
Total title claims paid, net of recoupments | (115) | (110) |
Ending balance of claim loss reserve for title insurance | $ 1,480 | $ 1,487 |
Provision for title insurance claim losses as a percentage of title insurance premiums | 4.50% | 4.50% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy for Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | $ 2,054 | $ 1,998 |
Total assets | 3,143 | 2,898 |
U.S. government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 265 | 225 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 76 | 148 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 1,581 | 1,503 |
Mortgage-backed/asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 73 | 60 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 59 | 62 |
Preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 287 | 301 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 690 | 498 |
Other long-term investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term investment | 112 | 101 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 708 | 514 |
Level 1 | U.S. government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Level 1 | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Level 1 | Mortgage-backed/asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Level 1 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Level 1 | Preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 18 | 16 |
Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 690 | 498 |
Level 1 | Other long-term investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term investment | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 2,307 | 2,266 |
Level 2 | U.S. government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 265 | 225 |
Level 2 | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 76 | 148 |
Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 1,565 | 1,486 |
Level 2 | Mortgage-backed/asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 73 | 60 |
Level 2 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 59 | 62 |
Level 2 | Preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 269 | 285 |
Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 0 | 0 |
Level 2 | Other long-term investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term investment | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 128 | 118 |
Level 3 | U.S. government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Level 3 | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 16 | 17 |
Level 3 | Mortgage-backed/asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Level 3 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Level 3 | Preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 0 | 0 |
Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 0 | 0 |
Level 3 | Other long-term investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term investment | $ 112 | $ 101 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Assets Measured on a Recurring Basis (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)firm | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)firm | Jun. 30, 2018USD ($) | Jan. 01, 2018USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Number of firms to value preferred stock and bond portfolios | firm | 1 | 1 | |||
Number of firms utilized to value Level 3 other-long term investments | firm | 1 | 1 | |||
Level 3 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Fair value, Beginning of period | $ 125 | $ 114 | $ 118 | $ 0 | |
Transfers from Level 2 | 0 | 13 | |||
Transfers to Level 2 | (2) | 0 | (5) | 0 | |
Paid-in-kind dividends | 2 | 2 | 4 | 3 | |
Purchases | 5 | 0 | |||
Sales and maturities | (1) | 0 | |||
Net valuation loss included in earnings | 3 | (1) | 8 | (1) | |
Net unrealized loss included in other comprehensive earnings | (1) | 0 | |||
Fair value, End of period | 128 | 115 | 128 | 115 | |
Level 3 | ASU 2016-01 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Fair value of assets associated with the adoption of ASU 2016-01 | $ 100 | ||||
Level 3 | Other long-term investment | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Fair value, Beginning of period | 107 | 101 | 101 | 0 | |
Transfers from Level 2 | 0 | 0 | |||
Transfers to Level 2 | 0 | 0 | 0 | 0 | |
Paid-in-kind dividends | 2 | 2 | 3 | 3 | |
Purchases | 0 | 0 | |||
Sales and maturities | 0 | 0 | |||
Net valuation loss included in earnings | 3 | (1) | 8 | (1) | |
Net unrealized loss included in other comprehensive earnings | 0 | 0 | |||
Fair value, End of period | 112 | 102 | 112 | 102 | |
Level 3 | Other long-term investment | ASU 2016-01 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Fair value of assets associated with the adoption of ASU 2016-01 | 100 | ||||
Level 3 | Corporate debt securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Fair value, Beginning of period | 18 | 13 | 17 | 0 | |
Transfers from Level 2 | 0 | 13 | |||
Transfers to Level 2 | (2) | 0 | (5) | 0 | |
Paid-in-kind dividends | 0 | 0 | 1 | 0 | |
Purchases | 5 | 0 | |||
Sales and maturities | (1) | 0 | |||
Net valuation loss included in earnings | 0 | 0 | 0 | 0 | |
Net unrealized loss included in other comprehensive earnings | (1) | 0 | |||
Fair value, End of period | $ 16 | $ 13 | $ 16 | $ 13 | |
Level 3 | Corporate debt securities | ASU 2016-01 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Fair value of assets associated with the adoption of ASU 2016-01 | $ 0 | ||||
Level 3 | Measurement Input, Discount Rate | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value, discount rate | 0.073 | 0.073 | |||
Level 3 | Measurement Input, Discount Rate | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value, discount rate | 0.079 | 0.079 | |||
Level 3 | Measurement Input, Discount Rate | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value, discount rate | 0.075 | 0.075 |
Investments - Schedule of Carry
Investments - Schedule of Carrying Amount and Fair Value of Available for Sale Securities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed maturity securities available for sale: | ||
Carrying Value | $ 2,054 | $ 1,998 |
Cost Basis | 2,007 | 2,009 |
Unrealized Gains | 55 | 9 |
Unrealized Losses | (8) | (20) |
U.S. government and agencies | ||
Fixed maturity securities available for sale: | ||
Carrying Value | 265 | 225 |
Cost Basis | 259 | 226 |
Unrealized Gains | 6 | 1 |
Unrealized Losses | 0 | (2) |
State and political subdivisions | ||
Fixed maturity securities available for sale: | ||
Carrying Value | 76 | 148 |
Cost Basis | 74 | 147 |
Unrealized Gains | 2 | 1 |
Unrealized Losses | 0 | 0 |
Corporate debt securities | ||
Fixed maturity securities available for sale: | ||
Carrying Value | 1,581 | 1,503 |
Cost Basis | 1,542 | 1,510 |
Unrealized Gains | 44 | 6 |
Unrealized Losses | (5) | (13) |
Mortgage-backed/asset-backed securities | ||
Fixed maturity securities available for sale: | ||
Carrying Value | 73 | 60 |
Cost Basis | 71 | 59 |
Unrealized Gains | 2 | 1 |
Unrealized Losses | 0 | 0 |
Foreign government bonds | ||
Fixed maturity securities available for sale: | ||
Carrying Value | 59 | 62 |
Cost Basis | 61 | 67 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | $ (3) | $ (5) |
Investments - Maturity of Fixed
Investments - Maturity of Fixed Maturity Securities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
One year or less | $ 328 | |
After one year through five years | 1,196 | |
After five years through ten years | 301 | |
After ten years | 111 | |
Mortgage-backed/asset-backed securities | 71 | |
Cost Basis | $ 2,007 | $ 2,009 |
Amortized Cost, % of Total | ||
One year or less | 16.00% | |
After one year through five years | 59.00% | |
After five years through ten years | 15.00% | |
After ten years | 6.00% | |
Mortgage-backed/asset-backed securities | 4.00% | |
Total | 100.00% | |
Fair Value | ||
One year or less | $ 326 | |
After one year through five years | 1,217 | |
After five years through ten years | 319 | |
After ten years | 119 | |
Mortgage-backed/asset-backed securities | 73 | |
Total | $ 2,054 | $ 1,998 |
Fair Value, % of Total | ||
One year or less | 16.00% | |
After one year through five years | 59.00% | |
After five years through ten years | 15.00% | |
After ten years | 6.00% | |
Mortgage-backed/asset-backed securities | 4.00% | |
Total | 100.00% |
Investments - Securities in a C
Investments - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months | $ 107 | $ 784 |
12 Months or Longer | 269 | 428 |
Total | 376 | 1,212 |
Unrealized Losses | ||
Less than 12 Months | (4) | (12) |
12 Months or Longer | (4) | (8) |
Total | (8) | (20) |
U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months | 71 | |
12 Months or Longer | 117 | |
Total | 188 | |
Unrealized Losses | ||
Less than 12 Months | (1) | |
12 Months or Longer | (1) | |
Total | (2) | |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months | 107 | 661 |
12 Months or Longer | 236 | 301 |
Total | 343 | 962 |
Unrealized Losses | ||
Less than 12 Months | (4) | (8) |
12 Months or Longer | (1) | (5) |
Total | (5) | (13) |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months | 0 | 52 |
12 Months or Longer | 33 | 10 |
Total | 33 | 62 |
Unrealized Losses | ||
Less than 12 Months | 0 | (3) |
12 Months or Longer | (3) | (2) |
Total | $ (3) | $ (5) |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Impairment charges related to investments | $ 0 | $ 3,000,000 | $ 0 | $ 3,000,000 | |
Available-for-sale, amount held with previously recognized other than temporary impairments | $ 0 | $ 0 | $ 0 |
Investments - Realized Gains an
Investments - Realized Gains and Losses and Proceeds on Investments and Other Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property and equipment | ||||
Net Realized Gains (Losses) | $ 0 | $ 5 | ||
Gross Proceeds from Sale/Maturity | 0 | $ 0 | 21 | |
Impairment of lease assets | ||||
Net Realized Gains (Losses) | $ (5) | (8) | ||
Other realized gains and losses, net | ||||
Net Realized Gains (Losses) | (3) | (1) | (3) | (1) |
Gross Proceeds from Sale/Maturity | 0 | 0 | 0 | 0 |
Total | ||||
Net Realized Gains (Losses) | 41 | (16) | 183 | (15) |
Gross Proceeds from Sale/Maturity | 222 | 310 | 522 | 629 |
Sales and maturities of fixed maturity securities available for sale | ||||
Sales and maturities of fixed maturity securities available for sale | ||||
Gross Realized Gains | 1 | 1 | 2 | 4 |
Gross Realized Losses | 0 | (3) | (1) | (3) |
Net Realized Gains (Losses) | 1 | (2) | 1 | 1 |
Gross Proceeds from Sale/Maturity | 137 | 245 | 372 | 543 |
Preferred securities | ||||
Equity Securities, FV-NI, Realized Gain (Loss) [Abstract] | ||||
Gross Realized Gains | 0 | 1 | 0 | 1 |
Gross Realized Losses | 0 | 0 | 0 | 0 |
Net Realized Gains (Losses) | 0 | 1 | 0 | 1 |
Gross Proceeds from Sale/Maturity | 3 | 46 | 26 | 46 |
Valuation Of Equity And Preferred Securities | ||||
Net Realized Gains (Losses) | 2 | (5) | 13 | (8) |
Equity securities | ||||
Equity Securities, FV-NI, Realized Gain (Loss) [Abstract] | ||||
Gross Realized Gains | 1 | 3 | 5 | 3 |
Gross Realized Losses | 0 | (4) | 0 | (4) |
Net Realized Gains (Losses) | 1 | (1) | 5 | (1) |
Gross Proceeds from Sale/Maturity | 82 | 19 | 124 | 19 |
Valuation Of Equity And Preferred Securities | ||||
Net Realized Gains (Losses) | 42 | $ (8) | 168 | $ (12) |
Other long-term investment | ||||
Valuation of other long term investments | ||||
Net Realized Gains (Losses) | $ 3 | $ 7 |
Investments - Investments with
Investments - Investments with Related Party (Details) - Cannae - Common Stock - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Included in equity securities shares of related party (in shares) | 5,706,134 | 5,706,134 |
Fair value of shares owned of related party | $ 165 | $ 98 |
Notes Payable - Schedule of Lon
Notes Payable - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2019 | May 16, 2019 | Dec. 31, 2018 | Aug. 13, 2018 | Aug. 28, 2012 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 838 | $ 836 | |||
Unsecured notes | 4.50% Notes, net of discount | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 443 | 442 | |||
Stated interest rate | 4.50% | 4.50% | 4.50% | ||
Unsecured notes | 5.50% Notes, net of discount | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 398 | 398 | |||
Stated interest rate | 5.50% | 5.50% | |||
Line of Credit | Revolving Credit Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ (3) | $ (4) |
Notes Payable - Long Term Debt
Notes Payable - Long Term Debt Narrative (Details) $ in Millions | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
Excess fair value over carrying value of long-term debt | $ 53 |
Debt issuance costs, net | 12 |
Unsecured notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair value of long term debt | $ 903 |
Notes Payable - 4.50% Notes (De
Notes Payable - 4.50% Notes (Details) - Unsecured notes - 4.50 % Notes Due August 2028 - USD ($) | Jun. 30, 2019 | May 16, 2019 | Aug. 13, 2018 |
Debt Instrument [Line Items] | |||
Amount of debt instrument | $ 450,000,000 | ||
Stated interest rate | 4.50% | 4.50% | 4.50% |
Price as percent of par on offering of unsecured Notes | 99.252% | ||
Annual interest rate | 4.594% |
Notes Payable - Existing Credit
Notes Payable - Existing Credit Agreement (Details) - USD ($) | Jun. 30, 2019 | Nov. 30, 2017 | Jun. 25, 2013 |
Debt Instrument [Line Items] | |||
Outstanding principal | $ 850,000,000 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility | $ 100,000,000 | ||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Due April 2022 | |||
Debt Instrument [Line Items] | |||
Line of credit facility | $ 800,000,000 | ||
Outstanding principal | 0 | ||
Unamortized debt issuance costs | 3,000,000 | ||
Remaining borrowing capacity | $ 800,000,000 |
Notes Payable - 5.50% Notes (De
Notes Payable - 5.50% Notes (Details) - Unsecured notes - 5.50% notes due September 2022 - USD ($) | Jun. 30, 2019 | Aug. 28, 2012 |
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 400,000,000 | |
Stated interest rate | 5.50% | 5.50% |
Notes Payable - Principal Matur
Notes Payable - Principal Maturities of Notes Payable (Details) $ in Millions | Jun. 30, 2019USD ($) |
Maturities of Long-term Debt [Abstract] | |
2019 (remaining) | $ 0 |
2020 | 0 |
2021 | 0 |
2022 | 400 |
2023 | 0 |
Thereafter | 450 |
Total Long Term Debt | $ 850 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for legal and regulatory matters | $ 12 | $ 11 |
Dividends (Details)
Dividends (Details) - $ / shares | Jul. 16, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Subsequent Event [Line Items] | |||
Cash dividends declared (in usd per share) | $ 0.62 | $ 0.60 | |
FNF Common Stock | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash dividends declared (in usd per share) | $ 0.31 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Title premiums | $ 1,379 | $ 1,331 | $ 2,371 | $ 2,367 | |
Other revenues | 665 | 765 | 1,199 | 1,383 | |
Revenues from external customers | 2,044 | 2,096 | 3,570 | 3,750 | |
Interest and investment income, including realized gains and losses | 100 | 27 | 296 | 66 | |
Total revenues | 2,144 | 2,123 | 3,866 | 3,816 | |
Depreciation and amortization | 44 | 45 | 88 | 92 | |
Interest expense | 12 | 11 | 24 | 22 | |
Earnings (loss) from continuing operations, before income taxes and equity in earnings (loss) of unconsolidated affiliates | 353 | 275 | 617 | 402 | |
Income tax expense (benefit) | 86 | 22 | 151 | 53 | |
Earnings before equity in earnings of unconsolidated affiliates | 267 | 253 | 466 | 349 | |
Equity in earnings of unconsolidated affiliates | 3 | 1 | 10 | 3 | |
Net earnings | 270 | 254 | 476 | 352 | |
Assets | 10,189 | 9,254 | 10,189 | 9,254 | $ 9,301 |
Goodwill | 2,725 | 2,764 | 2,725 | 2,764 | $ 2,726 |
Corporate and other | |||||
Segment Reporting Information [Line Items] | |||||
Title premiums | 0 | 0 | 0 | 0 | |
Other revenues | 52 | 165 | 105 | 267 | |
Revenues from external customers | 52 | 165 | 105 | 267 | |
Interest and investment income, including realized gains and losses | 0 | 0 | 6 | 1 | |
Total revenues | 52 | 165 | 111 | 268 | |
Depreciation and amortization | 6 | 7 | 11 | 14 | |
Interest expense | 12 | 11 | 24 | 22 | |
Earnings (loss) from continuing operations, before income taxes and equity in earnings (loss) of unconsolidated affiliates | (34) | (25) | (62) | (61) | |
Income tax expense (benefit) | (9) | (7) | (15) | (16) | |
Earnings before equity in earnings of unconsolidated affiliates | (25) | (18) | (47) | (45) | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 1 | |
Net earnings | (25) | (18) | (47) | (44) | |
Assets | 1,149 | 714 | 1,149 | 714 | |
Goodwill | 264 | 317 | 264 | 317 | |
Operating Segments | Title | |||||
Segment Reporting Information [Line Items] | |||||
Title premiums | 1,379 | 1,331 | 2,371 | 2,367 | |
Other revenues | 613 | 600 | 1,094 | 1,116 | |
Revenues from external customers | 1,992 | 1,931 | 3,465 | 3,483 | |
Interest and investment income, including realized gains and losses | 100 | 27 | 290 | 65 | |
Total revenues | 2,092 | 1,958 | 3,755 | 3,548 | |
Depreciation and amortization | 38 | 38 | 77 | 78 | |
Interest expense | 0 | 0 | 0 | 0 | |
Earnings (loss) from continuing operations, before income taxes and equity in earnings (loss) of unconsolidated affiliates | 387 | 300 | 679 | 463 | |
Income tax expense (benefit) | 95 | 29 | 166 | 69 | |
Earnings before equity in earnings of unconsolidated affiliates | 292 | 271 | 513 | 394 | |
Equity in earnings of unconsolidated affiliates | 3 | 1 | 10 | 2 | |
Net earnings | 295 | 272 | 523 | 396 | |
Assets | 9,040 | 8,540 | 9,040 | 8,540 | |
Goodwill | $ 2,461 | $ 2,447 | $ 2,461 | $ 2,447 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash paid for: | ||
Interest | $ 22 | $ 18 |
Income taxes | 78 | 112 |
Non-cash investing and financing activities: | ||
Change in proceeds of sales of investments available for sale receivable in period | (6) | 5 |
Change in purchases of investments available for sale payable in period | (4) | 0 |
Change in accrual for unsettled repurchases of formerly outstanding debt instruments | 0 | (11) |
Lease liabilities recognized in exchange for lease right-of-use assets | 15 | 0 |
Remeasurement of lease liabilities | $ 42 | $ 0 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 551 | $ 666 | $ 988 | $ 1,186 |
Interest and investment income | 59 | 43 | 113 | 81 |
Realized gains and losses, net | 41 | (16) | 183 | (15) |
Total revenues | 2,144 | 2,123 | 3,866 | 3,816 |
Title | ||||
Disaggregation of Revenue [Line Items] | ||||
Loan subservicing revenue | 68 | 53 | 124 | 106 |
Title | Direct title insurance premiums | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 625 | 599 | 1,065 | 1,071 |
Title | Agency title insurance premiums | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 754 | 732 | 1,306 | 1,296 |
Title | Home warranty | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 46 | 46 | 87 | 91 |
Title | Insurance contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1,425 | 1,377 | 2,458 | 2,458 |
Title | Escrow fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 237 | 235 | 402 | 418 |
Title | Other title-related fees and income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 165 | 162 | 301 | 303 |
Title | ServiceLink, excluding title premiums, escrow fees, and subservicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 97 | 104 | 180 | 198 |
Corporate and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 52 | 165 | 111 | 268 |
Corporate and other | Real estate technology | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 26 | 27 | 51 | 52 |
Corporate and other | Real estate brokerage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 14 | 134 | 21 | 210 |
Corporate and other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 12 | $ 4 | $ 33 | $ 5 |
Revenue Recognition - Informati
Revenue Recognition - Information about Receivables and Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Trade receivables | $ 337 | $ 337 | $ 284 |
Deferred revenue (contract liabilities) | 112 | $ 112 | $ 105 |
Policy period | 1 year | ||
Revenue recognized | $ 44 | $ 78 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Nov. 30, 2017 | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)renew | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 4 years 2 months 12 days | 4 years 2 months 12 days | |
Options to renew | renew | 1 | ||
Weighted average discount rate, percent | 4.37% | 4.37% | |
Operating lease cost | $ | $ 36 | $ 73 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating Leases term | 1 year | 1 year | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating Leases term | 10 years | 10 years | |
LIBOR | Revolving Credit Facility | |||
Lessee, Lease, Description [Line Items] | |||
Basis spread on variable rate (as percent) | 4.50% | ||
Revolving Credit Facility Due April 2022 | Line of Credit | LIBOR | Revolving Credit Facility | |||
Lessee, Lease, Description [Line Items] | |||
Basis spread on variable rate (as percent) | 1.40% |
Leases - Future Payments Under
Leases - Future Payments Under Operating Leases Accounted for Under ASC Topic 842 (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 (remaining) | $ 74 | |
2020 | 130 | |
2021 | 102 | |
2022 | 75 | |
2023 | 47 | |
Thereafter | 42 | |
Total operating lease payments, undiscounted | 470 | |
Less: present value discount | 42 | |
Lease liability, at present value | $ 428 | $ 0 |
Leases - Future Payments Unde_2
Leases - Future Payments Under Operating Leases Accounted for Under ASC Topic 840 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 145 |
2020 | 121 |
2021 | 93 |
2022 | 68 |
2023 | 41 |
Thereafter | 28 |
Total future minimum operating lease payments | $ 496 |
Uncategorized Items - fnf063019
Label | Element | Value |
Accounting Standards Update 2016-01 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 19,000,000 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (109,000,000) |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 128,000,000 |